Salary Negotiation
Dr. Monika Renard
Florida Gulf Coast University
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Negotiation
“Negotiation is a back-and-forth communication designed
to reach an agreement when you and the other side have
some interests that are shared and others that are opposed.
Negotiation is the highest form of communication used by
the lowest number of people
-President John F. Kennedy
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Salary Negotiation Process
When NOT to Negotiate
 Prepare to Negotiate Salary
 Recognize Buying Signals
 Build and Use Powerful Arguments
 Use Negotiation Styles
 Evaluate the Offer
 Multiple Offers
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When Not to Negotiate
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On the application blank
– “open” “negotiable” “competitive”
During routine discussions
of the job
–
–
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“What is your salary history?”
“How much are you looking for?”
Do not negotiate without an offer
– Rarely on first interview
– “Sidestepping”
– Is this an offer?
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Prepare to Negotiate Salary

Know your minimums (BATNA)
– Salary, benefits, other items, which?

Know what your skills are worth
in the current market
–
–
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Salary range for level
above and below you at
the company
BLS data
State labor office
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–
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Ask headhunters
Salary surveys
National Business
Employment Weekly by
Wall Street Journal
every week.
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1998 Salary Offers to Bachelor’s Degree
Candidates by Degree
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Accounting
Business Admin
Construction Management
Distribution Management
Economics & Finance
Hotel/Restaurant
Human Resources (& LR)
MIS
Marketing
Merchandising Management
32,825
31,454
32,498
35,503
33,691
25,534
27,151
39,218
29,231
26,584
Source: National Association of Colleges and Employers
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1996 Salary Offers to Masters’
Degree Candidates by Degree
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Accounting
Econ/Finance
(Banking)
42,650
HR (inc LR)
MIS
Marketing
41,547
MS - Business
32,537
39,870
38,400
37,237

MBA -Non-tech undergrad
 < 1 yr exp
40,731
 1-2 yrs exp
46,394
 2-4 yrs exp
54,999
 > 4 yrs exp
67,209
MBA -Tech undergrad
 < 1 yr exp
39,146
 1-2 yrs exp
43,000
 2-4 yrs exp
51,600
 > 4 yrs exp
70,339
Source: National Association of Colleges and Employers
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Recognize Buying Signals
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He/She says:
Or, You say:
“How do you think
 “How do you think I would fit in
you would like
with the group?”
working here?”
 “I feel my background and
“People with your
experience would definitely
background always fit complement the workgroup,
in well with us.”
don’t you?”
“You could make a
 “I think I could make a real
real contribution
contribution here. What do you
here.”
think?”
“Well, you certainly  “I know I have what it takes to
seem to have what it
do this job. What questions are
takes.”
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lingering in your mind?”
Build and Use Powerful Arguments
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Know your worth to the employer
Know your fit with the job
What do you offer the organization,
can you do for their benefit?
Use to determine your BATNA and
as negotiation ammunition.
–
–
–
–
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Skills: common, specialized skills, and organizational
Knowledge: common, specialized, and organizational
Experience: length of time, previous triumphs
Contacts: internal and external, long term and short term.
Replaceability: how are you more valuable than someone
else?
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What Do Employers Want?
Personal/Professional
 Drive, motivation
 Communication skills
 Problem solving skills
 Team player
 Confidence
 Energy, determination
 Reliability
 Honesty/integrity
 Pride, dedication
 Analytical skills
Business Profile
 Profit
 Efficiency
 Effectiveness
 Money earned/saved
 Necessary skills for job
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Homework: Salary Negotiation
Preparation

Identify a job you would be interested in
having in an actual company.
– E.g., www.monster.com

Find out the market rate for that job.
– E.g., online.onetcenter.org/

Write out at least five good arguments for
why you would be worth a higher salary
than they might offer.
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Researching a Prospective
Employer
Organization name, address, phone, contact
 Main operations, main locations
 2-3 significant aspects of history, development
 How it compares to others in
same business
 Policies re: training, salary,
advancement
 Future prospects of organization
 Other info re: company or industry
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Salary Negotiation Tactics
Win-Win
Win-Lose
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Salary Negotiation Styles:
More Effective

Active negotiation
–
–
–

Negotiate to get the highest salary possible
Ask for more than you expect employer
to offer
Ask for more than the company offers
Preparation and self-promotion
–
–
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Emphasize relevance of education
Stress motivation to work
Explain willingness to do different things
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Sharing Information

Sharing info

Requests for info
Build common ground
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Objective criteria
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I would rather have a higher
salary than an increase in
moving expenses
Is salary negotiable?
We both want to benefit the
company.
I’ve checked 3 moving
companies, and moving
expenses run about $3,000
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Problem-Solving
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Request reactions to
offers
Focus on interests

Separate people from
problem

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Would that be all right with
you?
Why is that important to you?
I am pleased with your
cooperation, buy I am still
concerned about salary.
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Inventing Options for Mutual Gain

Alternatives

Logrolling
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Expand the pie
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Suppose I started next week to meet
your deadline, and then took off two
weeks next month to arrange my
move?
Starting next week is important to
you, salary to me. How about if I
start next week for a $1000 bonus?
If I work for part commission, we
could both get more.
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Salary Negotiation Styles:
Less Effective

Aggressive
–
–
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Say you have other job offers
Say you have another offer with higher salary
Acceptance
–
–
Ask for salary you hope to get
Accept any salary over minimum
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Competitive Tactics
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Threat
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Positional
Commitment
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Putdown
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Challenge
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Give me $50,000 salary or I will
have to interview elsewhere.
$50,000 is as low as I will go.
That offer is like leaving a dime
tip for your waiter, more
insulting than anything else.
What’s the problem with your
company that you offer so little?
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Accommodating, Compromising
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Yielding
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Acceptance
Trade
concession
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Split difference
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OK, I guess promotion-review is
not that important
I wanted $38,000 but I will accept
$30,000 if I can start in 2 weeks
instead of 1.
$34,000 is fine.
I would accept $3000 less salary if
you will increase the moving
expense by $3000.
Your offer is $40,000, I want
50,000. Lets say $45,000.
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Other Competitive Tactics

High Initial Demands

I must have $70,000
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Delay
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Limited authority
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Good guy/bad guy
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Temper Tantrum
I need to think about this
overnight
My spouse would have to
approve
I’d be happy to do that, buy
my current boss won’t allow
it.
How dare you say that?
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Evaluate the Offer
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It sounds fair and equitable - You may
still want to negotiate
ALWAYS say how excited you are
about the opportunity and how much
you want to work there.
If it meets your needs, your
BATNA, your career interests,
etc. money may not be so
important.
Think it over, don’t decide on the spot.
Get a Written Offer/Contract.
KEEP LOOKING UNTIL YOU DO!
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Evaluate the Job, Too
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Weigh salary, future earnings and career prospects,
benefits, commute lifestyle, stability of company, gut
feelings. Answer:
Do you like the work?
Do you have a realistic chance of success on the job?
Do title and responsibilities provide challenge?
Is opportunity for growth compatible with your needs?
Are location, stability, reputation in line with your needs?
Is atmosphere/culture conducive to you enjoying it?
Will you get along with manager and workgroup?
Are money and total compensation the best you can get? 23
It Isn’t What You Expected

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ALWAYS say how excited you are
about the opportunity and how much
you want to work there, with them.
Run money topic as far as you can
in a calm and businesslike way.
Examine other potential benefits of the job
– Future salary
- Title & promotion after months
– Signing bonus
- Bonus, commission
– Performance review - Car, gas, maintenance, parking
Try money again.
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Multiple Offers

Generate as many interviews as possible in a 2to 3-week period
–
“Mr. Johnson, I’m calling because while still under
consideration with your company I have received a
job offer from one of your competitors. I would
hate to make a decision without the chance of
speaking with you again. I was very impressed by
my meeting with you. Can we get together in the
next couple of days?”
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Accepting New Job

Accept verbally, ask for a written offer, give
notice.
–
“Mr. Smith, I’d like to accept the position of general
manager at a starting salary of $42,000. I will be able
to start work on January 7. And I understand my
package will include life, health, dental, a 401K plan
and a company car. I will be glad to start on the above
date pending a written offer received in time to give
my present employer adequate notice of my departure.
I’m sure that’s acceptable to you.”
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